BMW projects growth of 15% to 20% for 2014

The increase in the Brazilian's income in recent years has helped to leverage the premium car market, which has grown to levels above the industry total. However, with the new automotive system, automakers that do not have manufacturing unit on domestic soil found themselves obliged to decide: build a factory in the country or continue with a thin slice of plates issued? The German BMW didn't think twice and was the first of the luxury brands to announce a plant in Brazil still in 2012. The operation in Araquari, Santa Catarina, should start in October this year and the goal of the brand is growing between 15% and 20% in 2014.
"It's a very bold projection, but are supported in the fact that the plant starts its operations this year," he said in an interview with the DCI Director of marketing for BMW of Brazil, Herlander Zola. The Executive points out that the expected growth for the automaker is above the total market. "We believe that the sector shall be variation this year, only stability".
Before 2008, BMW sold around 3 thousand vehicles per year in the country. In 2011, the brand reached plates issued almost 11 thousand units. "The potential for growth of Brazil already pointed out at that time that local production was feasible," says Zola.
However, the Innovate-Auto came as a cold shower for importers, which grew dramatically. Not only the traditional German marks, but until then unknown Brazilian audience, the Chinese JAC and Chery.
"Certainly, the new automotive system was the factor that has accelerated our decision to plant flag in the country," explains BMW's Executive. Proof of that was the sudden drop in sales of the brand, which in 2012 have reached about 8 thousand units, a decrease of almost 30% over the previous year. "All importers have lost much, including the premium market," he says.
With the decision of the sedimented factory and the ongoing investment, BMW can begin to take advantage of an import quota without the increase of 30 percentage points in the tax on industrialized products (IPI). The result was immediate and, in 2013, the automaker's plates issued rose again, reaching 14.7 thousand units, an increase of 83.7% for 2012.
"The potential for growth is there," says Zola. However, the Commission believes that the overall luxury market should register an increase of 10% in 2014, index less than the average of recent years. For the future, the Executive is optimistic. "This segment should grow a lot," he points out.
However, competition will not be easy. After BMW last year, the conterrâneas Mercedes-Benz (Daimler group) and Audi (Volkswagen Group), in addition to the British Land Rover, also announced factory on domestic soil. Still, Zola is confident. "In the premium segment, we are leaders with about 30% market share, and we intend to keep that slice," he says.
Capacity
Investments in the luxury market will lead the country to expand significantly the capacity of production of premium vehicles. Mercedes announced contribution of r $ 500 million in a plant in Iracemápolis (SP) in order to be able to produce up to 20 thousand units annually. Already the Audi should invest a further r $ 500 million on a line shared with VW in São José dos Pinhais (PR). Capacity, informed the group, will be of 30 thousand vehicles per year.
The British Land Rover also announced, at the end of last year, a contribution of $ 750 million for an estimated production capacity of 24 thousand vehicles per year in Itatiaia (RJ).
BMW factory already will have an installed capacity of 32 thousand vehicles per year. Zola asserts that the operation should start in a shift, with flow volume around 2 thousand units. Initially, the plant must meet only to the internal market. "In a second stage, the export to the Mercosur can be considered, after we evaluate all the necessary requirements," says Zola.
The Director of BMW it also States that, depending on the brand's competitive capacity, other destinations will not be discarded. "In a third moment, we can consider other markets," says Zola.
Brazilian consumer
The Director of BMW States that consumer income, in Brazil, has increased in recent years and access to credit has also been expanded. "With this, the Brazilian began to want more expensive cars, which contributes to our demand," he says.
Zola believes the premium vehicle market should grow much in the next ten years. It is understood, in Brazil, that the luxury car category encompasses models that cost up to $ 100,000.
The BMW Executive highlights not only the premium market consumer profile, in Brazil, has changed. "Today, luxury cars engines consume less. The products are becoming more accessible, i.e. the brands also are adapting, "says Zola.